Benzoyl peroxide is a popular ingredient that is used in acne medications. It is applied topically, and when done correctly the skin will dry and peel. This reaction is due to the fact that the peroxide is killing off the bacteria in the skin that causes acne. However, extreme dryness can often result in a burning sensation. The extreme dryness and burning typically go away once the product is no longer being used, but they can lead to discomfort if you have to use it regularly.